market (6)

Hollywood's Rent Seeking

The first step to getting out of a hole is to stop digging. Yet, all too often, the reaction is to just the opposite. This is particularly the case with industries that have made a business model out of enlisting the government to pad their profits.  The New York Times recently reported on the legal fight between Pandora and The American Society of Composers, Authors and Publishers (ASCAP), one of the two licensing entities that essentially control music publishing. 

The lawsuit highlights the wreckage caused by government intervention replacing market forces and involves things like Department of Justice consent decrees, mandated payments, and mandates for the use of other people’s property. In other words, its a total statist mess.  

One might think that this lawsuit and many others just like it would be a sign for the industry to move towards a far less complex and far more profitable market-based system. Not so much. 

Already in a government created hole, the industry’s apparent solution is to dig harder, deeper and faster. Rather than innovate, the recording industry makes ready use of lawsuits to try to maintain an outdated business model. In a rapidly changing world, sometimes that isn’t enough. So when lawsuits are ineffective, they turn to their lobbyists and seek even more government intervention to protect them from competition and advances in technology.  

One of the industry’s greatest desires is to put the Internet genie back in the bottle. Since they can’t do that, their solution is to use the government to censor it. In 2012, an industry backed bill called the Stop Online Piracy Act (SOPA) was defeated in Congress thanks to an uprising among tech giants and advocates. The bill would have granted government the power to unilaterally shut down websites, without due process, based exclusively on industry complaints of copyright infringement.  There have been one million such complaints filed against Google alone.  Despite its failure in Congress, this issue remains very much alive with the industry and Obama administration continuing to push it. 

Another long time goal of the industry is performance royalties for songs played on the radio. Artists have benefitted from airplay on radio stations since radio first became widespread. In exchange for allowing radio stations to play their records, artists received millions in free advertising that sells records, concert tickets and other merchandise. Now the industry wants radio stations to pay artists for playing their songs. Such performance royalties would be fine as a voluntary free market exchange. That’s not how the industry envisions it. 

Their plan is laid out in legislation ironically known as the Free Market Royalty Act (FMRA) recently introduced into Congress. This bill goes even one step further than government intervention and actually seeks to make the industry itself a pseudo-government agency. The bill not only mandates that radio stations pay performers for their songs but grants a government enforced monopoly to an organization run by a handful of record industry executives with the power to set prices. Once these few executives have set a price, independent negotiations would be outlawed.  

The collision between the market and policies like FMRA and SOPA would have far reaching and complicated consequences for the market place and indeed the industry itself. Such crony government contrived systems are always doomed to fail in the long run. Eventually the hole just gets too deep and swallows up those doing the digging.

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I remember that Soros was declared a criminal in France and in one SE Asian country, can't remember if it was Cambodia or Laos. He is prohibited entry in these countries because of his destructive efforts to devestate those countries both financially, civilly and politically. He almost brought the British pound down in one of his massive trading schemes to short that currency.

To that end, the article link I am posting below should me a MUST READ for everyone on this site and it should go viral and be sent to both Darrell Issa and all the investigative members on the House investigative committee. They Will and Must pay attention if enough of us contact his and other committee members' through emails and calls.


Until we cut off the ability of Soros, through his secret hedge fund, to manipulate the markets, pay off corrupted elected officials, and the media itself, nothing we do to tinker with the tax code or puny budget "fixes." will delay the destruction of this country. I truly believe we only have several months, at the MOST, to get cracking and get this committee and our elected officials to call for action. Please read the article below to see why all the things we are concentrating on now are nothing but diversions unless we cut off these globalists' ability to control the financials of the market worldwide and bring down our free market to enrich the corrupt of the world and enslave the working men and women of this once great country. Not one word of exaggeration here.

Read and TAKE ACTION! ---

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Open Letter To Tea Party

"The tea party's success has drawn hundreds of politicians and groups seeking to fasten themselves to the movement, steer it and speak for it. Millions of dollars have flowed in from corporations and rich donors, all of whom have their own ideas about  what the tea party should  be. This struggle for the soul of the movement has left many of its original activists facing agonizing  decisions: Do they, should they, still belong?" Washington Post 12/31/10

The Tea Party claims to be pro business and anti big bureaucracy, including big government. It believes that government stifles entrepreneurship and destroys creativity of its citizens. There is too much power centralized in government and thus diminishes the power and freedom of our citizens.

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First a full disclosure, Rajjpuut has recently run a blog saying that we are already in a double-dip recession . . . he may be considered “ highly prejudiced” on this matter . . . .
Confirmed Double-Hindenburg Omens

Suggest 'Iffy' Stock Market
Those of you with e-mail addresses today probably read a very poorly researched article re-written badly from the original Wall Street Journal story by yahoo finance . . . .
about the so-called Hindenburg Omen which may be of interest to those of you with IRAs or money in the stock market. The article is false in about six of its key statements. To understand the Hindenburg Omen, let Rajjpuut help you out:
Strong stock pickers and so-called expert analysts tend to belong to two different camps. "Fundamentalists" look deeply into the accounting data from a business with particular interest in stocks as long-term investments. "Technicians," on the other hand, don’t care about business fundamentals, but instead look at the recent price and volume history etc. of a company’s stock in daily trading and tend to be most interested in short- or mid-term investments. The best selections as you can imagine usually come from those who combine both approaches.

Getting down to brass tacks, the Hindenburg Omen is a technical indicator which purports to give advanced warnings about stock market declines and even severe stock market crashes. Here’s where you can find a lot more detail on the HO and a much more accurate picture of exactly what HO is:
The creator of the Hindenburg Omen, a blind mathematics professor named Jim Miekka says he expects a 20% “correction” this fall, but sometimes the HO occurs and drops of a mere 4-5% follow, it's definitely not perfect.
In any case, all that being said, here’s the truth you need to know:
A. On Wednesday, August 11th there was a near Hindenburg Omen occurrence on the New York Stock Exchange (had two more of the NYSE stocks reached new lows that day a true HO would have occurred.
B. The very next day Thursday, August 12th, a true Hindenburg Omen occurred which is not considered very serious except in consideration of the near miss the day before.
C. A week ago, Thursday, August 19th, another near HO occurrence was spotted.
D. The very next day, last Friday, August 20th, a second true Hindenburg Omen occurred just eight days after the first. This combination of two Hindenburg Omens within a ten-day period is fairly rare and almost always indicates a drop in the stop market of at least 5% and on frequent occasions predicts drops of such magnitude that they earn the name CRASHES.
You now have all the information you need to begin thinking of what to do about your own investments. Were Rajjpuut (who's already told you he believes we're now in a double-dip recession and is therefore prejudiced in this matter) in the stock market advisor biz he’d presumably say, sell your stocks other than utilities and immediately buy a mutual fund equivalent to either the Franklin Funds or Fidelity Funds gold fund; or precious metals fund; or oil fund; or energy fund; or some combination of these funds. You can find similar "commodities-style" mutual funds to Franklin or Fidelity from at least 20 other reputable fund families. On the other hand doubters, especially serious fundamentalist doubters, of technical analysis, like presumably Warren Buffet, typically believe in buying and holding "strong stocks" regardless of recent market action.

Obviously, the decision is yours only, but now you know a bit more about the Hindenburg Omen. Do read the Wikipedia article before making any decisions and think carefully about your decision. Good luck, with your investments.
Ya’all live long, strong and ornery,
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